Treasury

Treasury finances in May 2002. Report date: June 20, 2002

6/20/2002

Treasury finances in May, June 20, 2002 (PDF 15K)

Figures for Treasury finances in the first five months of 2002 are now available. They are on a cash basis and therefore not comparable to the Treasury accounts or the fiscal budget, both of which are presented on an accruals basis. According to these figures, the cash deficit from operations amounted to 8.9 billion kronur, compared to a deficit of5.1 billion kronur by the end of May 2001. The net financial balance was negative by 8.2 billion kronur compared with a deficit of 7.2 billion kronur at the same time last year.

The Treasury’s total revenue amounted to 92 billion kronur, an increase of about 6 billion kronur from last year or 6½ per cent. The Treasury´s tax revenue increased somewhat less, or by 5½ per cent. In comparison, general price changes amount to 8 per cent for this period, indicating that the economy is still contracting although the contraction is receding. As evidence of this, revenue from value-added tax for the first five months increased by close to 2 billion kronur from last year, or by 7½ per cent, equivalent to a ½ per cent contraction in real terms, compared with a 7 per cent contraction in the corresponding period last year.

The Treasury’s total expenditure amounted to 100.7 billion kronur, increasing by close to 9½ billion kronur from last year or 10.5 per cent. The main impact comes from a 3.1 billion kronur increase in health care payments. Education and cultural affairs expenditure increased by 1.2 billion kronur and administrative costs by 1.8 billion kronur.

Foreign long-term borrowing increased by 21.6 billion kronur. In the coming months, the share of long-term debt will be increased and short-term loans will therefore decrease. Domestic borrowing amounted to 9 billion kronur. Repayments of Treasury debt amounted to 18.3 billion kronur of which 10 billion constitute repayments of foreign debt. The Treasury remitted 3.8 billion kronur to the Government Employees Pension Fund in order to lower future liabilities of the Treasury. The overall cash balance was negative by 1.9 billion kronur, compared with a 1 billion kronur deficit at the end of May last year.

Treasury finances January-May 2002

(Millions of kronur, cash basis)

1998

1999

2000

2001

2002

Revenue...............................…………........

62,111

72,866

81,013

86,064

91,868

- Asset sales

-648

-376

-

3

-

Expenditure......................…………............

62,764

68,562

74,492

91,173

100,746

Cash from operations..............................

-1,301

3,928

6,521

-5,107

-8,878

Financial transactions..............................

1,821

67

1,125

-2,115

712

Net financial balance…….........................

520

3,996

7,647

-7,222

-8,167

Debt redemption........................................

-7,197

-16,801

-19,319

-21,545

-18,348

Domestic…...............................................

-7,023

-7,149

-10,529

-16,874

8,207

Foreign......................................................

-174

-9,652

-8,790

-14,753

10,141

Pension fund prepayments………...........

0

-767

-2,500

-6,250

-3,750

Gross borrowing requirement.….............

-6,678

-13,573

-14,171

-35,017

-30,265

New borrowing...........................................

7,888

8,107

12,704

34,047

28,324

Domestic…...............................................

13,019

-1,126

5,371

9,534

4,402

Foreign.....................................................

-5,130

9,233

7,333

24,513

23,922

Overall cash balance……….....................

1,211

-5,465

-1,468

-971

-1,941


Treasury revenue January-May 2002

(Millions of kronur, cash basis)

% increase from previous year

2000

2001

2002

1999

2000

2001

2002

Total tax revenue.........................

75,907

79,680

84,129

18.5

12.9

5.0

5.6

Taxes on income and profit........

24,255

28,224

30,309

16.1

21.7

16.4

7.4

Personal income tax.................

17,375

19,707

22,381

14.4

14.9

13.4

13.6

Corporate income tax

3,078

3,674

2,250

23.1

29.8

19.4

-38.8

Other taxes on income and profit.

3,802

4,843

5,678

20.0

56.4

27.4

17.2

Social Security taxes...................

7,639

8,260

9,192

14.0

7.3

8.1

10.4

Net wealth taxes..........................

3,744

4,278

4,198

11.2

13.5

14.3

-1.9

Taxes on goods and services

40,079

38,684

40,238

21.7

9.0

-3.5

4.0

Value added tax

25,146

24,372

26,145

24.4

11.6

-3.1

7.3

Other indirect taxes

14,931

14,314

14,092

17.6

4.8

-4.1

-1.6

Of which:

Excise tax on motor vehicles

2,101

1,372

1,089

45.3

-11.4

-34.7

-20.6

Excise tax on petrol............

3,177

2,956

2,851

-4.0

22.8

-7.0

-3.6

Diesel weight tax................

1,765

1,939

1,869

20.0

18.2

9.9

-3.6

Tobacco and liquor taxex....

3,374

3,100

3,029

7.8

5.9

-8.1

-2.3

Other indirect taxes..............

4,514

4,947

5,254

28.4

-2.0

9.6

6.2

Other taxes...................................

190

234

192

-20.0

71.1

30.8

12.9

Other revenue...............................

5,108

6,380

7,744

12.5

-8.6

24.9

21.4

Total revenue.................................

81,013

86,063

91,868

18.0

11.2

6.2

6.7


Treasury expenditure January-May 2002

(Millions of kronur, cash basis)

% increase from last year

2000

2001

2002

1999

2000

2001

2002

Administration...........................

8,919

9,168

10,928

9.8

17.0

2.8

19.2

General administration.............

5,104

5,036

6,171

12.8

17.2

-1.3

22.5

Justice and law enforcement.....

3,816

4,132

4,756

6.0

16.9

8.3

15.1

Social affairs...............................

43,570

52,243

58,737

9.9

5.1

19.9

12.4

Of which: Education and culture…

10,040

11,575

13,167

11.8

8.4

15.3

13.8

Health........................……

18,161

21,333

24,447

12.1

6.8

17.5

14.6

Social security……............

12,853

16,442

17,599

5.4

-0.1

27.9

7.0

Economic affairs.........................

10,670

13,594

13,864

11.1

1.2

27.4

2.0

Of which: Agriculture.............……

3,866

5,010

4,615

7.0

2.6

29.6

-7.9

Communications.......…

3,957

5,105

5,517

16.9

0.6

29.0

8.1

Interest expenditure...................

8,392

11,690

12,469

4.5

25.0

39.3

6.7

Other expenditure.....................

2,938

4,479

4,747

2.5

31.2

52.5

6.0

Total expenditure.......................

74,492

91,174

100,746

9.2

8.6

22.4

10.5